Utilization of biomass through anaerobic digestion and hydrothermal carbonization is crucial to maximize resource efficiency. At the same time, supply chain integration ensures sustainable feedstock management and minimizes environmental and logistical impacts, enabling a holistic approach to a circular bioeconomy. This study presents an integrated approach to simultaneously optimize the biomass supply chain network and process flowsheet, which includes anaerobic digestion, cogeneration, and hydrothermal carbonization. A three-layer supply chain network superstructure was hence developed to integrate the optimization of process variables with supply chain features such as transportation modes, feedstock supply, plant location, and demand location. A mixed-integer nonlinear programming model aimed at maximizing the economic performance of the system was formulated and applied to a case study of selected regions in Slovenia. The results show a great potential for the utilization of organic biomass with an annual after tax profit of 23.13 million USD per year, with the production of 245.70 GWh/yr of electricity, 298.83 GWh/yr of heat, and 185.08 kt/yr of hydrochar. The optimal configuration of the supply chain network, including the selection of supply zones, plant locations and demand locations, transportation links, and mode of transportation is presented, along with the optimal process variables within the plant.
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